# A stock will pay a dividend of 1.00 per share one year from now. Dividends are expected to double every

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## Question:

A stock will pay a dividend of 1.00 per share one year from now. Dividends are expected to double every year for the next nine years and then remain level forever.

Find the present value of all future dividends using an effective annual interest rate of 25%.

**Related Book For**

## Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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**Question Details**

Chapter #

**20**Section: INTEGRATIVE CASE

Problem: 1